US Presidents will come and go. India will always provoke bipartisan interest in US politics. So we’ll only say let Trump and Biden fight it out!
Turning the analytical eye inwards: Is it time for CPG brands to adopt B2B eCommerce Marketplaces as their primary channel?
OK, first things first. WHAT is a B2B eCommerce Marketplace? Think of it as a marketplace for the brands’ channel partners which includes its buyers and sellers. A Shopify, if you will, for CPG brands, their sellers and buyers, and even consumers. All transactions within this marketplace – whether made by a salesperson or customer – are powered by B2B eCommerce.
In a B2B eCommerce Marketplace journey, the order-to-sale and delivery workflows are digitised. Stakeholders along this journey – the brands’ operations teams, salespeople, buyers and sellers use a variety of marketplace tech capabilities to have seamless integration.
Most brands already use Sales Force Automation and Distribution Management Systems. They have the data and insights. Now they have to encourage all stakeholders to make data-led decisions, empower them with the right tech, and leverage their logistics muscle.
So WHY do it? Here are five reasons why.
1. Increased Online Sales
Dabur, India’s leading FMCG business reported a 19.8% increase in its quarterly revenue. Its eCommerce business grew by 200% and contributed 6% of the total sales. Consumers in pandemic times prefer to shop online, which puts pressure on brands and their distribution channels to offer best in class service. B2B eCommerce Marketplaces allow brands to have complete control over stock availability and offer transparency for all supply chain channel partners. The visibility helps channel partners to forecast demand better and make optimum decisions regarding stocking.
2. Forecast Demand Better
When retailers can self-service their requirements through a B2B eCommerce Marketplace, they order SKUs that are in demand. With Just In Time service from the brand, and by tracking the delivery, they can service their customers better. This process creates a “Pull” effect for the brand and creates a rich pool of demand data. The real-time data can aid sales teams to know WHAT to sell, WHERE to sell, and HOW much to sell.
3. Optimise Availability
B2B eCommerce Marketplaces can provide hyper-local insights on the stock availability at stores. These insights can also provide trends and insights on what’s selling, when. Brands can plan availability to match times of high demand for different products at a click of a button.
4. Customer Insights
For brands, their customers are the sellers, buyers and end consumers. By its very nature, B2B eCommerce Marketplaces connect the dots between demand and supply, and supply and consumption. By demonstrating the benefits of making data-driven decisions, brands can transform the behaviour of their stakeholders.
5. Best in Class Service
Provide your sellers and buyers with complete transparency into the supply chain and insights that will help them to make better buying decisions for their customers. Start by rolling out a retailer app for these channel partners.
Over time, brands can achieve a lower cost of sales by digitising both the wholesalers and retailers. The digital technology will help brands to augment existing RTM and drive down the cost of sales.
If you’re interested in exploring the benefits of B2B eCommerce Marketplace for your organisation, write to us at firstname.lastname@example.org.
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